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The Cisco CEO said the company is leveraging a long-term technology transition to hybrid cloud, 5G and WiFi 6.
Cisco reported $13.1 billion in revenue and $2.8 billion in generally accepted accounting principles (GAAP) net income for the fiscal fourth quarter. Cisco’s revenue for fiscal year 2022 is up 3.4 percent.
On the earnings call, Cisco Chief Financial Officer Scott Herren provided the following guidance for fiscal 2023: “We expect revenue growth to be in the range of 4% to 6% annually. Non-GAAP earnings per share guidance is expected to be in the range of $3.49 to $3.56, plus 4% to 6% on an annualized basis,” he said.
In the same call, the company’s CEO, Chuck Robbins, broke down its latest quarterly revenue numbers, stating that total product revenue was $9.7 billion, and service revenue was $3.4 billion.
Cisco’s Secure Agile Networks, which includes data center network switches, was the company’s top business unit, accounting for 46% of its total revenue of $6.09 billion in the quarter, followed by its Internet for the Future unit, which generated $1.26 billion. Income.
Robbins pointed to a list of technology transitions as a good thing for the company. “Long-term megatrends such as hybrid cloud, hybrid workloads, security, IoT, 400-Gig and beyond, 5G and WiFi 6, as well as the movement toward application observability, can provide a tailwind for our growth,” he said. “With our portfolio in a very strong position to serve our customers, I am very optimistic about the future. Before we discuss the quarter in detail, I want to provide some additional color on the supply side and how we continue to be more resilient.
One of the biggest transitions taking place in the technology world is the shift to cloud and subscription-based services. On the earnings call, Robbins said 81 percent of its software revenue came from subscribers, up two percentage points year over year. He also said that the company’s total subscription revenue was $22.4 billion, with total subscription revenue representing 43 percent of Cisco’s total revenue.
“We continue to make progress in our transition to more software and subscription-based recurring revenue,” he said.
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